Summary
HAVING done the basic research into the funding mechanism known as the Public Private Partnership - formerly PFI, the Private Finance Initiative - I can categorically state that it is a huge waste of money. This is because none of the "good" elements of PPP cited by Alan Robertson is peculiar to the method. They can be applied to any project method; all you need is common sense. Thus, most of his defence falls like a house of cards.
The real killer element of PPP is the fact that the money is largely raised on the private money market, not from the Public Works Loan Board or the European Investment Bank as old-style capital was. This means the interest rate is higher by about 2percent, thus forcing the borrowers, usually local councils, to repay much larger amounts than they might otherwise do.See the full content of this document
Extract
Fording Councils to Pay Larger Amounts
Why, then, do they do it? Because this government and i...
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